According to www.dcvelocity.com, escalating delivery costs are pressuring U.S. operators, with 45% reporting that costs are rising faster than revenues in 2026, per FarEye’s Eye on the Last Mile America 2026 report.
Cost Pressures Mount Across Core Operational Areas
Fuel emerged as the top cost pressure for 7 in 10 operators surveyed, while driver-related expenses—including cost and availability—were cited by more than half. Vehicle operation costs ranked third, named by 40% of respondents. The data underscores how tightly compressed margins have become: 42% said delivery costs and revenues are growing at roughly the same pace, leaving little room for reinvestment or resilience planning.
Network Control Drives Performance and Cost Discipline
Organizations with greater control over their delivery networks achieved 95% on-time performance—versus just 65.5% among low-control peers. Crucially, higher-control operators also reported significantly lower median cost inflation: 8.3% compared to 14.5%—despite similar median investment levels, according to the report.
Fragmentation, Predictability, and AI Adoption Accelerate
Delivery networks are growing more hybrid and fragmented: 57% operate hybrid models (combining owned and outsourced capacity), and 47% of those plan to increase outsourcing. Prioritization is shifting from speed to reliability—55.7% prioritize predictability or first-attempt success, versus only 11.4% emphasizing maximum speed. Meanwhile, AI implementation is surging: 66.3% are now using or implementing AI, up from 46.2% in 2025.
“Delivery operators are being squeezed from both sides—core operating costs remain high while networks themselves are becoming more complex. What is particularly significant is that higher-control organizations are reporting 95% on-time performance and lower cost inflation without materially higher investment.” — Kushal Nahata, CEO and co-founder of FarEye
Source: DC Velocity
Compiled from international media by the SCI.AI editorial team.
